Zodiac and Fluidra - merger of pool equipment businesses globally and in Australia

Status:

Completed

Outcome:

Not opposed on 19 April 2018

Reference number:

63609

Industry:

Residential pool equipment

Commenced public review:

9 March 2018

Total review days:

25 days

Acquirer(s)

Piscine Luxembourg Holdings 2 S.a.r.l (Zodiac)

Target(s)

Fluidra S.A (Fluidra)

Market definition

The ACCC's review focused on the supply of residential pool equipment in Australia. The ACCC found that all key suppliers of residential pool equipment supply products across Australia, and accordingly considered that the geographic market for all relevant products is national.

For the purposes of this review, it was not necessary to reach a concluded view on the precise definition of product markets. The ACCC focused its competition analysis on the product markets where the merger parties have the highest shares of supply which are: pool pumps, pool filters, water treatment, pool cleaners and automation systems.

Competition analysis

The ACCC concluded that the proposed merger was unlikely to substantially lessen competition in any relevant market.

The ACCC found that a combined Zodiac and Fluidra would continue to face competition from a number of remaining suppliers including global players and local suppliers, who have a full range of products available in Australia and are able to expand. The ACCC also found that there are specialist manufacturers in particular pool equipment segments who will continue to constrain the merged entity in those segments.

The ACCC found that both full range and specialist manufacturers would likely be able to expand their operations if prices were to increase. There will therefore continue to be alternative sources of supply that will constrain the merged Zodiac/Fluidra.